Why build EnsoFi?
Solana is doing a great job bringing many new users to Web3. However, in DeFi, especially lending, there are many challenges that could affect new users' first experiences. This is important because they are used to the certainty of mainstream Web2 apps.
Here are two problems we're solving:
Fluctuating Interest Rates
The top 10 lending protocols now operate on a Peer-to-Pool model, offering floating interest rates based on supply and demand. However, in the dynamic market of Web3, interest rates can change significantly within a few days.
This creates a severe sense of uncertainty, discouraging users from utilising lending options.
Interest Rate Gap
In the Peer-to-Pool model, there's a difference between the rate borrowers pay and the rate lenders receive. The spread can be a disadvantage for both lenders and borrowers, especially during significantly high spread environment. Lenders will earn less money because they receive a lower rate, while borrowers will pay more because they are charged a higher rate.
Last updated
